Government to boost Financial reserves to curb inflation

1735 Views Kampala, Uganda
President Yoweri Museveni says Government will collect 6 trillion shillings in the next financial year to boost the financial reserves. He says this is intended to enable the country boost its food supplies.

The Uganda Bureau of Statistics announced that the annual headline inflation rate for the year ending March 2011 rose to 11.1% from 6.4% that was recorded for the year ended February 2011. This showed that the bureau had recorded the highest inflation rate since November 2009 when it was recorded at 11.9%.

President Museveni blames the food shortage in the country to the long drought the country faced in the months between August last year and January 2011. He says the solution will be irrigation which will be tackled between the third and fourth year of the incoming Government.

He also blames the food shortage on demand from southern Sudan and Congo, however this will be encouraged. He said it would be impossible for government to halt food exports to neigbouring countries, because local farmers will be turned into captive farmers since the food will be sold at home cheaply.

Museveni says when his government came into power in 1986; they did not have the money to fund irrigation schemes and could also not fully depend on donors for funding since it’s not sufficient.
He reveals that they have already set up planes to use mountains to irrigate the low lands. These include Mt. Elgon in the east, Agoro in the North and Mt. Rwenzori.

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On the fuel shortage he calls on Ugandans to use what they have sparingly. He blames the fuel shortage on the transport costs incurred on imports from abroad.

Uganda imports its fuel through neighbouring Kenya. 

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